Just how – badly – will the Budget affect you?

This is Money Podcast

This is Money

News, Business News, Investing, Business

4.4 • 735 Ratings

🗓️ 11 March 2016

⏱️ 53 minutes

🔗️ Recording | iTunes | RSS

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Summary

The Chancellor, George Osborne, has earned a reputation for leaks, U-Turns and unworkable tweaks to our taxes.

A captain of chaos, some might say.

His recent achievement, killing the cash Isa and replacing it with a tax-free limit on ALL savings accounts, will be a particularly memorable mess if anyone ever works out how it’s going to work.

He’s got another Budget speech planned for Wednesday 16 March.

For once, we don’t know much about what’s going to be in it. This is a bad sign.

There’s no general election any time soon so we can forget about bribes on that front.

He’s given himself the seemingly impossible task of balancing the nation’s books by 2020.

How on earth is he going to do that?

This is Money editor Simon Lambert, consumer affairs editor Rachel Rickard Straus and Share Radio’s Ed Bowsher have a pretty good stab at coming up with a hit list.

It’s not looking great.

George is desperate to get his hands on the £21bn tax-free benefits of pensions. But we’re fairly sure, thanks to the one leak, his plans to rob us of that have been postponed.

He’s already hit buy-to-let landlords – he could have another go at them without too much public anger.

Fuel duty seems an easy target – and no one will mind if petrol suddenly shoots back over £1 a litre on Thursday morning. Will they?

Maybe the disabled and other people on benefits could cope with further austerity measures?

National Insurance is good one –it mainly affects the lower paid; possibly attractive to Osborne the political animal

He’s already fiddled with stamp duty on house purchases – could he have another fiddle (on the roof) with that?

A change to salary sacrifice could tackle the problem of people who get tax-free iPhones from their employers

Whatever happens, we’re in for a fascinating ride and thankfully, HMRC is incredibly helpful and easy to deal with. The more complicated the tax reform the better.

Also this week, and back in the real world, we’re not saving enough, some investments make money and the Ford Capri makes a surprising comeback.

Georgie Frost is away.

Email us hello@dmgmedia.co.uk

Text us 020 7938 6000.

Hosts: Georgie Frost, Simon Lambert, Lee Boyce, Helen Crane

Producer: Georgie Frost

Hosted on Acast. See acast.com/privacy for more information.

Transcript

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0:00.0	This is Money brought to you in partnership with NS&I, giving you 100% security for your savings.
0:11.1	Hello and welcome to the This Is Money and Share Radio podcast in partnership with NS&I.
0:17.0	I'm Ed Baoucher sitting in for Georgie Frost this week, and here at Share Radio, we're with you on digital radio across the country and also online and through the Share Radio mobile app.
0:27.4	And I'm joined this week in the studio by This Is Money editor Simon Lambert and personal finance editor Rachel Rickard Strauss.
0:34.8	And we're going to talk through some of the stories that they've been
0:37.7	investigating over the last seven days on the This Is Money website. And on the agenda today,
0:44.3	a pensions victory for money, mail, and this is money. George Osborne won't be making any
0:49.8	major pension changes in next week's budget. But what will the Chancellor announce next week?
0:56.4	And new rules will soon let most people earn £1,000 of savings interest tax-free. Yet can
1:04.3	anybody actually explain how this will work? All sounds a bit mad. So, good morning to both of you, Simon and Rachel. Thanks so much
1:13.1	for coming on today. Really good to see you both. Hello, Ed. So let's start with pensions and a
1:19.0	victory for Money Mail and this is money, which is obviously good news. After much fear, speculation,
1:24.6	newspaper, column inches and airtime on this very show, we were all wondering about what the Chancellor might do with our pensions in this budget.
1:32.3	But it appears now that he'll do, well, nothing. Just think back to the Halcyon days of last year and a rise in state pensions.
1:40.3	As a result of our commitment to those who've worked hard all their lives and contributed to our
1:47.2	society, I can confirm that next year the basic state pension will rise by £3.35 to £19.30 a week.
1:55.9	That's the biggest real terms increase to the basic date pension in 15 years.
2:02.1	Cheers soon turned to anguish when fears gathered a pace that the Chancellor,
2:06.5	looking at the juicy 21 billion pounds, the Treasury sacrifices every year in pension relief,
2:13.1	would find a way to keep a big slice of that for his deficit reduction plans. Would he announce a flat
2:19.6	rate of tax relief for all pension savers? Or would he go for the nuclear option and launch a
2:24.7	pension's ICER? Well, for now at least, it appears neither. But don't get too subtle yet, because
	...

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